Question: Compare two unemployed workers; one is 25 years-old while the other is 55 years-old. Both workers have similar skills and face the same wage offer

Compare two unemployed workers; one is 25 years-old while the other is 55 years-old. Both workers have similar skills and face the same wage offer distribution. Suppose that both workers also incur similar search costs. Which worker will have a higher asking wage? Why? Can search theory explain why the unemployment rate of young workers differs from that of older workers?

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